NAVY DEPARTMENT, Washington, January 11, 1862.

Hon. WILLIAM H. SEWARD, Secretary of State.

SIR: I have the honor to acknowledge the receipt of your letter of the 10th instant in reference to the prisoners that have been turned over to the U. S. marshal at Key West by naval officers.

In giving instructions for the conveyance of the prisoners to New York the Department also proposes to send to the flag officer a circular letter, a copy of which I inclose, in order that such of them as come within its provisions may be released if your acquiesce in the proposition.

I am, very respectfully, your obedient servant,

GIDEON WELLES.

[Inclosure.]

NAVY DEPARTMENT, Washington, January 15, 1862.

Flag Officer WILLIAM W. McKEAN,

Commanding Gulf Blockading Squadron.

SIR: You may release such persons from the rebel State as shall be captured within the limits of your command provided they are civilians not in the rebel service and are not known to have engaged in any act against the authority of the United States and are not needed for witness. Before their release they will be required to sign a written parole not to engage in any hostile act against the United States during the present rebellion.

I am, respectfully, your obedient servant,

GIDEON WELLES.

DEPARTMENT OF STATE, Washington, January 13, 1862.

Hon. GIDEON WELLS, Secretary of the Navy.

SIR: I have the honor to acknowledge the receipt of your letter of the 11th instant. In reply I have to inform you that the proposition relative to the release of prisoners (civilians) contained in the circular addressed to the flag officer of the blockading squadron in that quarter is approved.

I have the honor to be, sir, your obedient servant,

WILLIAM H. SEWARD.

DEPARTMENT OF STATE, Washington, January 13, 1862.

S. W. MORTON, Esq.

SIR: Your are hereby appointed a special agent of this Department for the period of thirty days from the date hereof at a compensation of $75. Your duties will be to detect and suppress treasonable correspondence which may pass through Alexandria, Va., between persons in insurrection against the authority of the Government of the United States and their sympathizers and agents in that and other cities of the loyal States. You will report to L. C. Baker, esq., 217 Pennsylvania avenue, Washington, D. C., in connection with whom you are expected to operate.

I am, &c.,

WILLIAM H. SEWARD.